Organizing

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Types of Organisation:

1. Formal Organisation: An organization which is deliberately created to achieve organizational objectives.
2. Informal organisation: Natural grouping of people in an organization to satisfy personal and social needs of employees.

Formal Organisation is designed by the management to achieve organisational goals. Its advantages are the fixation of responsibility, clarity of roles, unity of command and effective accomplishment of goals. Its disadvantages are procedural delays, inadequate recognition of creativity, limited in scope.

Informal organisation arises out of interaction amongst people at work. Its advantages are speed, fulfilment of social needs, fills inadequacies of formal structure. Its disadvantages are: disruptive force, resistance to change and priority to group interests.